Negotiations for new free trade agreements

The free trade agreements that Mexico has with other countries are designed to establish rules for the exchange of goods and services and to eliminate barriers such as tariffs and taxes on imports and exports. Currently, Mexico has 13 free trade agreements with 52 countries, 6 economic agreements, and 32 investment promotion and protection agreements. Mexico’s trade policy is thus among the most open in the world, making Mexico part of one of the largest free trade areas in the world.

The EU and Mexico also signed a free trade agreement in 2000 with the aim of diversifying foreign trade and expanding investment opportunities. Today, the EU is Mexico’s third largest trading partner and second largest investor. Within the EU, Germany, as recipient of 28% of exports and 34% of imports, is the most important location, followed by Spain and Italy.

The UK is Mexico’s 16th largest trading partner and eighth largest source of investment, with more than 2000 companies in the country. Since the BREXIT in early 2020, the UK is now no longer included in the free trade agreement between the EU and Mexico, and thus new opportunities for trade have now had to be worked out. Great Britain, Northern Ireland and Mexico, signed a continuity agreement for this reason on December 15. The agreement establishes that trade relations between the two countries, with the exception of some included specifications, will be regulated in accordance with the provisions of the Treaty between Mexico and the EU.

A year ago, the governments of the two countries began consultations on the content that should be included in a separate free trade agreement, focusing on the creation of new business opportunities. Now, at the end of May, the delegate of the Mexican Ministry of Economy, Tatiana Clouthier, also traveled to the UK for further talks. Both delegations, she said, are aware of the importance of an agreement that will help companies in both countries access and better leverage existing and new global supply chains. The first official round of negotiations between the two countries will take place in Mexico City in July.

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